If everything goes according to plan, and shareholders vote in favour of the various inter-dependent resolutions at CapitaLand’s EGM and scheme meeting on Aug 10, CapitaLand Investment (CLI) is likely to make its debut on Sept 17. Based on the valuation of $4.102 each CapitaLand shareholder receives one CLI share, 0.155 CapitaLand Integrated Commercial Trust unit, and 95.1 cents in cash. As a result, CLI’s theoretical net asset value (NAV) on a pro forma basis is $2.823. For CLI to be a success, its share price should trade at or above its NAV.

What does CapitaLand’s restructure mean for its REITs?

According to Lee Chee Koon, group CEO of CapitaLand, CLI will be sponsor to the CapitaLand’s six REITs, CapitaLand Integrated Commercial Trust (CICT), Ascendas REIT, CapitaLand China Trust, Ascott Residence Trust (ART), Ascendas India Trust and CapitaLand Mall Malaysia Trust.

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